A network-attached storage (NAS) device can be viewed as a pricey addition to the home or office, but it can save you money in the long run. Depending on what you use cloud storage for, switching to a NAS can have a positive impact on your balance sheet and even provide additional functionality, improving overall system value. I'm going to run you through how this is the case, where cloud storage may continue to make sense, and why you should consider buying a NAS regardless.

NAS vs. cloud storage: Comparing prices

To compare the numbers, I'm going to use Synology's catalog of NAS, looking at the most affordable enclosures offered by the brand, as well as some of the larger units with better specifications and more drive bays. Even the more affordable Synology NAS enclosures can support more than 40TB of total storage capacity, depending on which RAID type you use (if any). Here's a look at the Synology NAS and how much they cost with drives, as well as the price per month for each GB of capacity over five years (not including energy costs).

The top 2 TB capacity example uses just one 2 TB drive, though ideally you'd want two 2 TB drives and enable RAID 1 for better redundancy. Every example thereafter uses enough drives to offer the capacity with a RAID configuration. The price of NAS-specific hard drives can fluctuate greatly, which is why some capacities may be cheaper than others. Even the 40 TB capacity example with four 20 TB drives costs just $0.0007 per GB over five years.

The upfront cost of a NAS is what proves to be the issue for many as cloud storage offers a more affordable way to grab gigabytes of storage. Cloud plans can start as little as $3 per month, which is a considerable discount compared to $272 with the Synology DiskStation DS223j and a 2 TB NAS HDD. But you're paying $3 per month for as long as you need cloud storage, whereas the NAS is fully paid for upfront, and you only need to factor in the price of electricity to run the server.

The examples above are for Google One (formerly Google Drive). Let's take the 2 TB and 30 TB plans for $10 and $150 per month, respectively. Over five years, these plans would cost you $600 and $9,000. So while cloud storage subscriptions may seem cheaper at first, a NAS will eventually work out cheaper. 30 TB of Google One storage would cost $0.005/mo per GB over five years (or $9,000). A Synology DiskStation DS923+ with four 16 TB drives for a capacity of 32 TB would cost $0.0008/mo per GB over five years (or $1,566).

NAS is the king of storage for a reason

A network-attached storage device is usually a small black box of plastic or metal with some drives. A small board with a low-power CPU and some RAM runs an operating system that not only manages the data stored on the drives but also apps and services turning the simple NAS into a fully-fledged server. You can create a media streaming service with the best NAS for Plex, manage surveillance footage, and even run a website or two. An enclosure can be purchased from brands such as Asustor, Synology, and TerraMaster and range in size and price.

The more affordable enclosures have the least capable processor, fixed RAM, and one or two drive bays. The higher the number of bays and the more powerful the specifications, the more the NAS enclosure will cost. An important factor to bear in mind with NAS is that it's managed by local users — in this case ... you! Cloud storage sees you rely on a third-party company to keep your data safe. A local NAS is managed locally, keeping everything in-house and lowering the risk of your data being compromised.

Then there's the fact that because a NAS is usually connected to a LAN, a connection can still be made to the server even during an ISP outage. It's not quite as straightforward as using a cloud platform since you'll have to install the OS and set everything up. But this is also the beauty of NAS. Because they're more advanced, you have more control over just about everything, including hardware. Want to add a drive to an available bay and unlock access to an additional 10 TB of space? Simply buy a drive and install it!

A NAS and specific drives will cost more than cloud storage within a set period, but if you're planning to use the same storage space for multiple years, a NAS will work out to be the cheaper option. Synology develops one of the user-friendliest operating systems for NAS and is my go-to recommendation for a beginner NAS enclosure. Once you're up and running, you'll be able to do just about anything on the NAS, including collaboration with others within a team.

Where cloud storage can make sense

Microsoft OneDrive, Google One, DropBox, iDrive, and other services are all popular for their easy user interfaces and convenient access to just about any device. Most of these services offer mobile apps and other means to ensure you always have access to your data. And if your ISP should fail, you'd lose access to the NAS when not physically present within range of the LAN access point. This is something that a cloud storage platform is not affected by as it's usually hosted on web servers with multiple redundancies.

As opposed to setting up a NAS, all you need to do with cloud storage is to choose a plan, make the initial payment for your first month, sign an agreement, and you're good to go. The cost of cloud storage is night and day cheaper compared to NAS and hard drives, but you won't be able to save anything on your plan in the long run and the service provider may increase the price to keep up with inflation. It's a small price to pay for the available support, cloud-hosted access from wherever you may be located, and great transfer speeds.

Speed is also a consideration for those with larger files. A NAS is limited to the bandwidth of the network links to the LAN. If your PC is connected to the NAS via 1Gbps links, you'll be limited to approximately 125MB/s. That's great for local usage but when connecting to the NAS from outside your home or office, the ISP may not offer high upload speeds, which will restrict how quickly files can be downloaded from the NAS. A cloud storage platform will usually max out your mobile or hardline connection.

Where things become interesting with cloud storage is how your data is kept, even after you cancel a subscription. Does your data get destroyed after canceling the subscription? How easy is it to obtain confirmation that this has taken place? Unlike a NAS where physical access is granted, there are a few unknowns to consider when using cloud storage. It's a small caveat for being able to quickly and easily collaborate with others and utilize some of the more advanced features offered by cloud platforms. For example, Microsoft will bundle its Office suite with its storage plans.

There's no right or wrong answer

Whether a NAS or cloud storage is best for your storage needs depends entirely on what you want to store, if you need to run services such as a media server, and if you prefer to have full control over your data. You won't have any control over how or where your data is stored on a cloud service. It's easier to use but will cost more over some time. Then there's the added risk of your data becoming compromised by malicious parties. Companies offering these services are not immune to attacks, though most do employ security measures to help shield against them.

A NAS is for advanced use with the capabilities of storing all your data, as well as running services. You can manage a security surveillance system, media streaming platform, or even a web server. You can do so much more with a NAS, especially a moderately powerful one. Build your own NAS with an old PC and you'll save even more money. Just be ready for a relatively steep learning curve if you've never managed network infrastructure or a server before.